Many UK investors planning on buying or selling properties in 2020 have put their plans on hold as a result of COVID-19, new research from FJP Investment has found.
The investment firm commissioned an independent survey of more than 850 UK investors, all of whom have investments in excess of £10,000, excluding property, pensions, savings or SIPPs.
It found that 20% of investors were planning on buying one or more properties in 2020 but will no longer be doing so as a result of the coronavirus pandemic. This figure nearly doubles for millennials – 39% of those aged between 18 and 34 have put their property-buying plans on hold.
Similarly, the research found that 19% of investors were planning on selling one or more properties in 2020 but have since decided not to.
More generally, 43% are not making major financial decisions until the pandemic has passed.
However, despite some hesitancy about pushing ahead with investments, the research showed almost half (48%) of UK investors still view property as a safe and secure asset in the midst of the current crisis, compared to just 12% who do not; the remaining 40% are unsure.
Jamie Johnson, CEO of FJP Investment, said: “Today’s research demonstrates just how COVID-19 has affected people’s property investment plans. There is a clear reluctance to engage with the market right now from both buyers and sellers, despite the fact real estate is still regarded a safe investment avenue in this volatile period.
“With the Government allowing real estate sales to go ahead again by relaxing social distancing measures this week, it will be interesting to see whether this affects investors’ attitudes. Far from being business as normal, I believe prospective buyers and sellers will still tread with caution in the coming month. However, once there is more certainty about the future, it seems likely there will be a rush of activity in the property market.”